Movado’s Q1 Sales Fall 6%
The company attributed the decline to a “challenging” retail environment.
“We are pleased with our first-quarter results, which are in line with our expectations and reflect the successful execution by our team in a retail environment that continues to be challenging,” CEO Efraim Grinberg said.
“During the quarter, we drove positive momentum with powerful new product innovation led by the performance of our new Movado Bold Quest and strong double-digit growth at Movado.com, which accelerated with our spring television campaign.”
Grinberg highlighted the company’s previously announced plan to increase marketing spend to $25 million, ramping up in the second quarter, and the launch of a new Movado campaign in the fall.
In the first quarter ending April 30, net sales fell 6 percent year-over-year (6 percent on a constant dollar basis) to $136.7 million.
Movado attributed the decrease to sales declines at brick-and-mortar stores owned by wholesale customers, as well as those operated by Movado.
Quarterly sales in the U.S. were down 6 percent year-over-year while international sales fell 5 percent (6 percent on a constant dollar basis).
Gross profit was $75.5 million, or 55 percent of net sales, compared with $82 million, or 57 percent of net sales, in the previous first quarter.
The decrease in gross margin percentage in Q1 was attributed to an “unfavorable” change in channel and product mix, along with the decreased leverage of certain fixed costs due to lower sales.
Movado reiterated its guidance for the year ahead, expecting fiscal 2025 net sales to be between $700 million and $710 million, with gross profit of approximately 55 percent of net sales, and operating income in the range of $32 million to $35 million.
“We remain committed to executing our growth strategy, with our strong financial position allowing us to invest in targeted areas,” said Grinberg.
“We expect our amplified marketing messaging to grow brand awareness and deliver a return to sales growth in the second half of the year.”
The Latest
From prioritizing the customer experience to optimizing inventory, columnist Emmanuel Raheb shares the keys to a successful holiday season.
Journalist Priya Raj plans to use the scholarship funds to further her media qualifications and amplify marginalized communities.
It marks the first championship win in the team’s 28-year history.
This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
It will start with rough diamonds that are larger than 1.25 carats and later expand to rough diamonds that are above 1 carat.
The capsule collection is inspired by friendship and connection, with a nod to ‘80s fashion.
The New York socialite’s elegant, transformable piece from the 1960s is headed to auction later this month.
Don't miss this one-stop-shop in October, curated with buyers’ needs in mind.
Texas jeweler Susan Eisen and NAJA’s Gail Brett Levine discuss how lab-grown diamonds have altered the landscape for jewelry appraisers.
On the verge of retirement, Kennedy recounts the most stressful stretch of his time at JSA and reveals what he’ll miss about the industry.
Signet Jewelers CEO Gina Drosos’ secrets to success are listening to her team and leaning on data to make decisions.
Part of the Welsh singer’s extensive jewelry collection, the bathtub-shaped Cartier watch went for nearly $72,000 at Sotheby’s Paris.
He dedicated his life to researching, writing, and speaking about gemstones in the hope he could inspire others to share his passion.
The event is slated for Oct. 17-19.
12 spots are available for travelers to visit Northern Tanzania and Southern Kenya from July 25 to Aug. 4.
Though they didn’t grow up together, siblings Ronald Leitzel and Tonia Leitzel Ulsh have grown together as co-owners of Mountz Jewelers.
The men allegedly posed as employees of a local energy company to gain entry to Hussein Murray’s home and then killed him in the basement.
The U.S. presidential election, inflation, and the aftermath of recent hurricanes could all have an impact on spending.
The Italian brand is also releasing a coffee table book and opening its headquarters and workshop in Valenza, Italy.
The pair of brothers, each with his own strengths, takes a divide-and-conquer approach to bettering the stores they grew up working in.
The mining company is set to hand over the South African diamond mine to an affiliate of Stargems Group by the month’s end.
Three generations of the Kessler family have been a part of the Dallas-based company.
All 74 lots of jewelry belonging to the late Democratic senator found buyers at Bonhams Los Angeles.
The two collaborated on a necklace and a pair of earrings that praise the beauty of Zambian emeralds.
Retailers can move jewelry care lines off countertops with the fixtures, which were designed for a “sophisticated retail environment.”
The 20th ICA Congress is slated for May 19-22 in Brasília, Brazil.
The jeweler is celebrating its 25th anniversary with a throwback campaign.